During the recovery, the BTC market will show the same dynamics as the government securities and commodities markets.
Macroeconomic factors have begun to impact markets for BTC, U.S. Treasury bonds, and commodities such as gold and oil in similar ways. That was the conclusion reached by analysts at Bloomberg Intelligence, who detailed their observations in the Crypto Outlook report.
The Fed’s monetary policy and similar macroeconomic factors have started to significantly impact the first cryptocurrency’s quotes. At the same time, BTC’s behavior will correlate less and less with stock market movements. Such a conclusion was made by Mike McGlone, Senior Commodity Strategist, and Jamie Coutts, Senior Market Structure Analyst.
The experts noted that BTC had remained one of the best-performing assets since its creation. Moreover, they predict that this state of affairs will persist, attributing it to Bitcoin’s gradual transition to global collateral.
The report also examines the current situation in the cryptocurrency market. The analysts note that the market has reached its lowest point vs. the 100-week moving average in July. Bitcoin quotes have been below the 200-week moving average (SMA) since June 14, which is beyond the standard. As of August 3, the BTC price recovered above the SMA, which was at $22,791.
The analysts also note that at the beginning of August, BTC was 70% below the ATH indicator but still remained five times higher than the March 2020 lows, showing the asset’s potential. They call $20,000 a key support zone for Bitcoin.
Last month, the Coinbase Institute Chief Economist’s research results were published, arguing that cryptocurrencies, stocks, and commodities share a similar risk profile.
